U.S. Bancorp mortgage banking revenue drops more than 13%
Net income falls slightly in Q1
U.S. Bancorp’s net income dipped slightly in the first quarter of 2017, due in part to the drop from the mortgage banking sector, which saw its revenues decrease more than 13% from the fourth quarter.
Net income attributable to U.S. Bancorp dipped 0.3% from the fourth quarter’s $1.48 billion to $1.47 billion in the first quarter. On the positive side, this is up 6.3% from $1.39 billion in the first quarter of 2016.
Diluted earnings per common share held steady from last quarter at $0.82 per share, an increase of 7.9% from last year’s $0.76 per share.
Total net revenue for the first quarter came in at $5.32 billion, down 2% from last quarter’s $5.44 billion but up 5.7% from $5.04 billion last year. The quarterly drop was due, in part, to the 13.8% drop in mortgage banking revenue from last quarter’s $240 million to $207 million in the first quarter.
But the news isn't all bad, 2017's first quarter mortgage banking revenue is up 10.7% from last year’s $187 million.
Average loans for residential mortgages increased 2.1% in the first quarter to $57.9 billion, up from $56.7 billion in the fourth quarter and up 6.8% from last year’s $54.2 billion.
Delinquencies continued to decrease as residential mortgages 90 days or more past due excluding non-performing loans dropped to 0.24%, down from 0.27% last quarter and from 0.31% last year. And delinquent mortgages including non-performing loans dropped to 1.23% in the first quarter, down from 1.31% in the fourth quarter and 1.54% last year.